BANK OF BARODA Vs. STATE OF U.P.

JUDGEMENT

(1.) Heard.

(2.) Yet another petition under Article 226 of the Constitution of India by a Bank seeking disposal of its application under Sec. 14 of the SARFAESI Act, 2002 (the Act, 2002) which has remained pending before the District Magistrate, Amethi since 2022. Every day such petitions are filed before this Court where Banks or financial institutions seek disposal of their applications filed under Sec. 14 of the Act, 2002 which have remained pending for long. The very purpose of having a separate procedure for recovery of loan etc under the Act, 2002 and providing a separate forum for adjudication of disputes was that such matters were to be expeditiously decided. Taking of possession under Sec. 14 of the Act, 2002 is a measure referable to Sec. 13(4) of the Act, 20021 but if applications under Sec. 14 of the Act, 2002 remain pending for long without there being any impediment in their disposal then it will create unimaginable consequences and unnecessary complications so far as recovery of loan etc is concerned as, often the Bank puts the secured asset to auction without having actual physical possession i.e. based on symbolic possession, but, in the absence of actual physical possession, the auction purchaser and the Bank both are put in an unenviable position leading to further litigation.

(3.) On being asked, Sri Manish Mishra, learned Standing Counsel submitted on the basis of instruction provided by the District Magistrate that on 16/4/2022, notices were issued to the borrower who filed his objections on 10/6/2022. Thereafter, several dates have been fixed. Five dates were fixed till 1/2/2023 but hearing could not take place on account of absence of advocates. Likewise, twenty three dates have been fixed since 2/6/2023 till 28/9/2024 but hearing could not take place in the absence of advocates.